According to analysts, the market trend looks positive and more upside can be expected in the near term on the back of third quarter results and interest rate cut hopes.

"I was not of the opinion that markets will break on the upside but they have clearly done that. Beyond 6,030, it clearly should signal a resumption of the up-move. I would not look for the index to head towards levels of 6,150," said Mitesh Thacker, Technical Analyst, miteshthacker,com.

"Now as long as we remain above 6,000, there is no need to change our view. A short term trader should keep that as a stop loss below 5,990 for the target of 6,150," he added.

Shares of Tata Consultancy Services will be in action after the company announced its third quarter results after market hours yesterday. TCS beat street estimates by reporting a profit after tax of Rs 3,550 crore for the third quarter versus an ET Now poll of Rs 3,240 crore. The profit growth witnessed an increase of 26.7 per cwnt year-on-year and 3.4 per cent quarter-on-quarter. It had posted net profit of Rs 2,803 crore in the same quarter of the previous fiscal (2011-12).

The revenue for the third quarter was reported at Rs 16,070 crore, up 21.7 per cent year-on-year and 2.9 per cent quarter-on-quarter. Its $100 million plus clients rose to 16 from 14.

The Sensex rose by 243 points, or 1.23 per cent, to 19906.41 while the broader Nifty closed up 1.22 per cent at 6024.05 - the highest closing since January 6, 2011 - after Finance Minister P Chidambaram announced on Monday the government's decision, removing uncertainty for now on taxing of portfolio investments by foreign investors.

The decision to delay the implementation of the General Anti-Avoidance Rules, or GAAR, to 2016 and the announcement of an exemption for investors whose money is deployed by foreign institutional investors (FII) and non-resident Indians to buy local stocks, buoyed the benchmark indices.

Exemption to investors in FIIs would keep participatory notes out of the ambit of GAAR, a move popular with the market as PNs account for 14 per cent of all FII investments in equity, debt and derivatives.

The US had a mixed day as the Dow Jones industrials finished in positive territory while other leading indices closed in the red. The Dow Jones Industrial Average was up 0.16 per cent, S&P 500 fell 0.08 per cent and the Nasdaq Composite declined 0.26 per cent.